Raising Money-Confident Kids

Set your kids up for financial success by teaching them about money and taking care of your own financial well-being.

It can be challenging to help children understand the concepts of spending and saving when they watch you ‘tap’ and ‘swipe’ instead of handing over physical money. Recent research from the Financial Planning Association (FPA) [1] reveals that 68% of Australian parents are reluctant to speak to their kids about money, or they don’t know where to start. But the report also revealed that children whose parents talk to them about money are more curious, confident and financially literate than their parents were at their age. And parents who receive financial advice are much more likely to feel comfortable talking to their kids about money.

What type of money parent are you?

The FPA found that parents fall into one of four categories when it comes to talking to their kids about money:

  1. RELAXED (22%)

You feel very comfortable talking to your kids about money and are transparent about money matters, but your conversations are infrequent and unplanned.

  1. ENGAGER (30%)

You feel comfortable talking to your kids about money and encourage good money behaviour through frequent and in-depth conversations

  1. AVOIDER (29%)

You don’t feel comfortable talking to your kids about money and have infrequent conversations, or none at all.

  1. TROOPER (19%)

You don’t feel comfortable talking to your kids about money, but you do it anyway – even though you often feel awkward or uncertain when doing so.

Learning from ‘Engaged’ money parents

Engaged money parents raise children who are equipped to deal with the digital money world, and teenagers who are prepared for the financial aspects of their first jobs.

Here are some actions you can take today to become an engaged money parent:

  • Give your kids pocket money from a young age so they can learn about spending and saving (the average amount of pocket money ranges from $6.20 a week for kids under nine years old to $17.60 for teenagers). [2]
  • Play shopping games with younger children to build their financial literacy and help them learn about ‘needs’ versus ‘wants’.
  • Teach your kids about different types of money, e.g. cash, credit cards, in-app purchases, cryptocurrency.
  • Include your children in household discussions about family finances.
  • Use online tools and resources to engage your kids’ interest and attention – like the Government’s MoneySmart website.
  • Encourage older children to get an after-school job to teach them about budgeting, tax and superannuation.

How you can look after your own financial well-being and role model good money behaviour

The number one reason parents give for being unable to talk to their kids about money is not feeling good about their own financial situation.[3]

Children learn money habits from their parents – both good and bad – so it’s important to be a good money role model for your children by taking care of your own financial wellbeing and building your financial literacy and confidence.

Start a conversation today

Seeking advice from Jason Cook, Financial Adviser, can help boost your financial confidence; with a plan in place that creates a lasting, positive legacy for your children and grandchildren. By taking care of your own finances first, you can lay the foundations for a better financial future for your whole family. If you would like to know more about how to become a positive money role model for your children, speak to Jason.

Jason Cook, Financial Adviser, WB Financial

Authorised Representative of Financial Wisdom Limited

Phone 07 3391 7199 or email enquiries.presidio@wb.com.au.

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[1] Financial Planning Association of Australia, Share the dream: research into raising the invisible money generation, August 2018.

[2] Financial Planning Association of Australia, Share the dream research into raising the invisible money generation, August 2018.

[3] Financial Planning Association of Australia, Share the dream research into raising the invisible money generation, August 2018.

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General Information. This content is not advice and provides information only. It does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking to Jason Cook, Financial Adviser, before making an investment decision. Presidio Financial Services Pty Ltd ABN 67 118 833 168 trading as WB Financial, its officers, employees, agents and associates believe in good faith that this information is correct at the time of compilation but do not warrant the accuracy or currency of the information and material. You should carefully check the date of compilation of the information and material (where relevant) to determine its accuracy. This market update has been prepared by Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, (Financial Wisdom) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. While care has been taken in the preparation of this information, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this information.

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